Which inventory valuation method assigns a value to the inventory on the balance sheet that approximates current cost and also mimics the actual flow of goods for most businesses?
A)FIFO
B)Weighted average
C)LIFO
D)Specific identification
E)First In Still Here

Question

Quizplus · Accepted Answer

FIFO (First In, First Out) assigns a value to inventory that approximates current cost because it assumes the oldest inventory items are used or sold first, which often mimics the actual flow of goods for many businesses.

Which Inventory Valuation Method Assigns a Value to the Inventory